MacAdam

In October 1993, plaintiff and respondent First City Properties, Inc. (First City) obtained a money judgment against Donal J. MacAdam (Donal) in an action on a promissory note. Unable to collect on the judgment, in April 1994, First City obtained orders to appear for examination (Code Civ. Proc., § 708.120) and served them along with subpoenas duces tecum on a number of third parties: Catherine P. MacAdam (Donal’s wife, hereinafter referred to as Catherine), RPV Marketing, Inc. (RPV), and Rio Dulce Land and Cattle Inc. (Rio) in an effort to obtain financial information about Donal. First City also attempted to levy on shares of stock in RPV and Rio owned by Donal. After Catherine, RPV, and Rio filed motions to quash the subpoenas and Catherine filed a third party claim as to the stock, the trial court imposed sanctions on Catherine, RPV, and Rio as well as their attorneys, Cummins & White. They appeal the order of sanctions.

Factual and Procedural Background

1. The Parties and the Postjudgment Collection Efforts

a. RPV and Rio

RPV and Rio are two corporations formed by Donal and Catherine. Donal and Catherine are admittedly the sole shareholders of both corporations.…